In a year-end trading statement, Kier said it had also managed to keep the order book above £10bn, with 85% of next year’s forecast revenue already secured.

Andrew Davies, chief executive, said that despite inflationary pressures Kier would report revenue and profit in line with expectations in September.

He added that Kier had generated better positive operating cash flow for the year and would now report a net cash position of around £60m at the year-end, higher than the £2.9m reported in the prior year.

During the year, the positive operating cash flow was used to repay the supply chain finance facility balance of £56m, to pay adjusting items, pension deficit obligations and to repay the remaining HMRC Covid-19 support of £6m.

He also said the average month-end net debt position would now be better than expected at £230m, down from £243m at the half year.

Davies said: “The group has delivered another year of strong operational and cash performance.

“We have now completed the second year of our medium-term value creation plan.

“This plan has embedded bidding discipline and risk management into the business and is allowing us to maximise value and convert the many high quality and profitable opportunities in our chosen markets, which remain favourable. 

“We have also strengthened our balance sheet and grown our order book despite the uncertainty in the wider economy.”